Hedge fund manager Cathie Wood is capitalizing on the Nvidia (NASDAQ:NVDA) stock rally. She continues to sell NVDA shares, ahead of Q4 earnings, the Wall Street Journal reported. Notably, Nvidia stock has gained nearly 47% year-to-date. Further, it’s up about 252% in one year. The chip giant will announce its fourth quarter Fiscal 2024 financial results on February 21.
Speaking to the Journal, Wood said Nvidia is the leader in the artificial intelligence (AI) space. However, she believes NVDA is a cyclical stock and expects increased competition and inventory correction to pose challenges. Wood confirmed that she recently sold Nvidia stock worth about $4.5 million.
Nvidia Stock: Analysts’ Increased Price Targets
While Wood sells NVDA shares, analysts are upbeat about its prospects, with several analysts increasing the price target and maintaining a bullish stance.
On February 16, analysts from Wedbush increased the price target to $800 from $600. Further, Wells Fargo raised the price target to $840 from $675. At the same time, Oppenheimer upped the price target to $850 from $650. These analysts expect NVDA to deliver solid earnings and offer a promising outlook for the whole year.
Nvidia – Q4 Consensus Estimate
Analysts expect Nvidia to deliver revenue of $20.37 billion, marking a substantial increase from the $6.05 billion reported in the prior-year quarter. The strong momentum in the Data Center business, led by demand for AI computing, will support the company’s top-line growth.
The significant increase in sales will likely cushion its bottom line in the fourth quarter. Wall Street expects NVDA to report earnings of $4.59 per share in Q4, compared to $0.88 in the prior-year quarter.
Is Nvidia Stock a Buy, Sell, or Hold?
Nvidia stock has a Strong Buy consensus rating based on 37 Buy and three Hold recommendations. However, due to the significant rally in its shares, analysts’ average price target of $746.91 implies 2.86% upside potential from current levels.
